Mumias sugar company is one of the major economic landmark in the vast former Western province.
The company was founded in 1971, with the following shareholding profile:
(a) Government of Kenya (71% shareholding) (b) Commonwealth Development Corporation of the United Kingdom (17% shareholding)
(c) Kenya Commercial Finance Company (5% shareholding)
(d) Booker McConnel (4% shareholding) and
(e) East African Development Bank (3% shareholding).[
The maximum quantity of sugar produced by the company was in 2005, when output amounted to 269,184 metric tonnes.
Kanduyi Mp Wafula Wamunyinyi moves the sugar bill in the national Assembly.
Following the dwindling fortunes of the giant sugar mill in Kenya, several intervention measures have by initiated to help revive the factory. Kanduyi MP Hon Wafula Wamunyinyi moved a motion in the national assembly to help restore order in the sector.
Bill further seeks to give farmers more say in the management of sugar factories by apportioning them a 51 per cent shareholding in privatized sugar firms.
The proposed bill posits that those who run unlicensed jaggery mills shall be liable to fines as high as Sh1 million or a five-year jail term.
Through the Sugar Bill, 2019, sponsored by Kanduyi MP Wafula Wamunyinyi, the lawmaker is seeking to reinstate the board’s independence which was lost during the repeal of the Crops Act.
His take is that the dissolution of the Kenya Sugar Board, which was turned into a directorate at the Agriculture, Fisheries, and Food Authority (AFFA), is to blame for the death of the sugar sector
Wamunyinyi said the bill if passed, would give the Kenya Sugar Board powers to regulate the sector directly instead of operating through AFFA.
“We need to take extraordinary measures to steer the revival of the sugar industry. My colleagues from the sugar-growing areas agreed on the legislation. He said.
He further argues that research on sugarcane seed varieties was affected by the dissolution of the board, the same setting stage for the proliferation of illegal imports.
“We had a directorate which had no idea what to do. The board had ideas as they interacted with farmers from time to time. They also approved importation of sugar,” the Kanduyi MP said.
The Sugar Bill further seeks to give farmers more say in the management of sugar factories by apportioning them a 51 per cent shareholding in privatized sugar firms.
The bill also seeks to have farmers –referred to as growers, have more than half representation at firms’ board of directors.
The Board will also control the duties, taxes and other tariffs applicable to sugar being imported into the country.
The proposed law further proposes a ten-year jail term or Sh2 million fines for those found guilty of diverting sugar meant for export.
The board would also oversee the signing of agreements negotiated between growers and millers, growers and outgrower institutions, and millers and out-grower institutions.
“The board shall participate in the formulation of overall policies, plans, and programs of work for the development of the sugar industry,” the Bill reads.
Also suggested in the proposal is the creation of a Sugar Development Fund – to consolidate monies raised from the sale of sugar to the benefit of farmers.
“The board shall facilitate an equitable mechanism for the pricing of sugarcane and appropriation of proceeds from sugar by-products,” the MP said.
In what gives farmers more say on the three-year term board, the Cabinet Secretary for Agriculture will appoint a chairperson elected by the board from among the groups’ representatives.
Farmers will also have five other slots while millers will get one. Other slots in the proposed 11-member board would be held by Agriculture PS, Treasury PS, Council of Governors, and a board CEO.
Wamunyinyi’s bill, once passed, would see the return of the Sugar Arbitration Tribunal to deal with disputes arising between growers and millers as well as other players.
Luhya Mps keep off the crucial debate!Shame!!!
Despite the political intrigues surrounding Mumias sugar and the excitement the matter creates in Luhyaland, it is now emerging that politicians from the region are only interested in Mumias sugar issues for political expediency.
Not long ago, an attempted receivership by Devki Ltd was met with brutal force from politicians from the region with some against while others supported it. But going by the numbers in the house on Thursday, one may be excused for thinking that we have a bunch of jokers in the house.
Whereas Luo Nyanza MPs from the cane growing areas were all in the house, Luhyaland only managed less than 10 Mps during the hour of reckoning.
Other than Kanduyi’s Wafula Wamunyinyi who was moving the motion, a handful of Mps were in the house namely, Hon Esseli Simiyu, Hon Elsie , Hon Adagala, Hon Osotsi, Hon Washiali and the Matungu MP Hon Nabulindo.
The likes of Hon Savula, Hon Naica, Hon Bishop Khamala who have all been vocal gave the session a wide berth. Sad!
The noise surrounding Devki from politicians was not the first. In January last year when the BBI rally in Bukhungu was being organized, a section of leaders from Mulembe nation scheduled a parallel rally in Mumias ostensibly to find lasting solution for Mumias sugar mill. No sooner had the dust settled that the Khalwale, Washiali led team that had threatened to revive Mumias vanished.
The proponents of the Mumias meeting too had invoked the names of Anc leader Hon Mudavadi and FK boss Hon Wetangula as part of the attendees but the latter showed up at Bukhungu albeit belatedly.
Mumias issues can only be canvased at the floor of the house and not in rallies or in funerals. Leaders from Mulembe nation should therefore direct their grievances through the right channel and avoid side shows for political capital.
